Bitcoin is likely to lose 50% of its cryptocurrency market share to Ethereum within five years, predicts Ian Mcloed, tech expert and business analyst from Thomas Crown Art.
The comments come as Ethereum, the world’s second-largest cryptocurrency by market cap, began a price recovery on Friday after being hit hard with a major sell-off in recent weeks. Bitcoin, the biggest digital currency, has also been in decline but bounced back quicker than its competitor.
Despite crashing by 85% this year, Ethereum regained ground late last week, jumping by almost 14% after its most recent plunge, finding itself trading again 10% lower once more in the past 24 hours. Mcloed says this is normal: “Turbulence is a regular, and sometimes welcome, feature of the crypto sector. Therefore, the Ethereum rebound was, and is, inevitable.”
Not only does he think it will bounce back before the end of 2018, in the long run Ethereum will significantly dent Bitcoin’s dominance. “In fact, I think we can expect Bitcoin to lose 50% of its cryptocurrency market share to Ethereum within five years,” says Mcloed. This is because Ethereum offers more uses and solutions than Bitcoin, he says, and because it’s backed with superior blockchain technology.
This is why Thomas Crown Art uses Ethereum’s blockchain in its art business, he adds. “It has allowed us to create a system to use artworks as a literal store of value; it becomes a cryptocurrency wallet. It also solves authenticity and provenance issues – essential in the world of art.”
Mcloed notes that all of the company’s artworks are logged on the Ethereum’s blockchain with a unique ‘smART’ contract. “Unless Bitcoin does more now to tackle scalability issues, and improves the technology it runs on, we cannot see how it can catch up with Ethereum over the next five years when the crypto market will be even more mainstream.”